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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPresident Biden to unveil new minimum tax on billionaires in budget
President Biden to unveil new minimum tax on billionaires in budget
First White House attempt to target billionaires with tax plan comes amid potential revival of talks with Manchin
By Jeff Stein at the Washington Post
Today at 4:00 p.m. EDT
https://www.washingtonpost.com/us-policy/2022/03/26/billionaire-tax-budget-biden/
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The White House will unveil a new minimum tax targeting billionaires as part of its 2023 budget Monday, proposing a tax on the richest 700 Americans for the first time, according to five people with knowledge of the matter and an administration document obtained by The Washington Post.
The Billionaire Minimum Income Tax plan under President Biden would establish a 20 percent minimum tax rate on all American households worth more than $100 million, the document says. The majority of new revenue raised by the tax would come from billionaires.
Biden has long favored higher taxes on the wealthiest Americans, but the White House has not introduced a tax plan specifically designed to hit billionaires until now. The plan comes amid signs that the administrations negotiations with Sen. Joe Manchin III (D-W.Va.) over stalled White House economic proposal may be reviving. But all previous efforts to tax billionaires have failed amid major political head winds, and it is unclear if Manchin and Sen. Kyrsten Sinema (D-Ariz.) will go along with the plan.
Many billionaires can pay far lower tax rates than average Americans because the federal government does not tax the increase in the value of their stock holdings until those assets are sold. Billionaires are able to borrow against their accumulated gains without triggering taxes on capital gains, enabling huge accumulations of wealth to go virtually untaxed by the federal government.
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Applegrove: Exceedingly fair to the billionaires.
Response to applegrove (Original post)
Chin music This message was self-deleted by its author.
dumbcat
(2,118 posts)went down, would they get a refund?
applegrove
(117,885 posts)amount the banks are basing loans on.
dumbcat
(2,118 posts)Do we let IRS bureaucrats make stock price predictions on individual stocks and companies? How would that work? If the IRS determines that a particular company's stock price increases are a "safe bet" what does that do to the free market?
Are we comfortable with the IRS doing that even if a Repub administration is in charge? Sounds like all sorts of opportunities for graft.
applegrove
(117,885 posts)the solidity of stock values be vulnerable to $$$ when they already deal and decide on other people's taxes? Why is one more graft heavy than the other?
dumbcat
(2,118 posts)assessing the solidity of stock values. Financial analysts and the free market do that. IRS agents can be bought, the "market" is much harder to influence.
Yes, I think we really want to move to a "wealth" tax rather than an "income" tax, but that is going to be tough to push through a Congress of wealthy individuals.
unblock
(51,920 posts)applegrove
(117,885 posts)unblock
(51,920 posts)We'll run into a ton of resistance on this as it is.
Republicans will raise an insane amount of money from the crazy rich to stop this or reverse this later.
I think the Biden did the math and figured he couldn't let anyone make the argument that the concept was ok but the number was too high.
No one can really say 20% is unfair or soaking the rich.
TreasonousBastard
(43,049 posts)The wealthy have stables of well-paid lawyers and accountants who come up with this stuff-- far more than the government, which is trying to get them to pay.
Scrivener7
(50,667 posts)dumbcat
(2,118 posts)Not even close.
Do the math. For example, US median family income is $67,500. That means only half of us earn more, not the "vast majority".
For an income of 67,500, even with NO deductions the tax for married filing jointly (most of us) from the tax table is:
$1,975 plus 12% of the amount over $19,750
which is about $7705 tax for an effective tax rate of 11.4%.
I make considerably more than that, and even the vast majority, and my effective tax rate taking only the standard deduction is just about 11%.
Take whatever real numbers you wish and do the math. The vast majority of us do not pay a 20% tax rate, and never have.
Turbineguy
(37,127 posts)protect the starving billionaires!
ProudMNDemocrat
(16,321 posts)If he can have a mega yacht built for him in the Netherlands to resemble the ones owned by Russian Oligarchs, he can pay more in taxes and still have BILLIONS to play with.
What's the problem here?
Sneederbunk
(14,185 posts)pdxflyboy
(671 posts)Right now.
Kingofalldems
(38,314 posts)You know republicans will be against it.
Kingofalldems
(38,314 posts)Deminpenn
(15,240 posts)The people this affects aren't exactly sympathetic figures.